From last week’s analysis on Tuesday, February 5th when the price of Bitcoin was $3501 the price has decreased at first as the resistance there was too strong for it to break out. Then the price has fallen to $3437 where it was hovering around in a minor horizontal range until Friday, when BTC started increasing exponentially and went from $3440 to $3800 at it’s highest spike. It was an increase of 10.5%.
As the price came up to the mentioned levels and interacted with the 0.5 Fibonacci level, we saw a retracement to the 0.328 Fibonacci level on which the price has retested it for support. The price is currently in an upward trajectory. But since there is a strong resistance point above it even if the price action has created a bull flag, we might not see a breakout just yet, as the price needs to establish firm support first.
The current horizontal support level is not that significant as the next one, so the horizontal resistance at $3783 will be a point of struggle. That is why strong momentum is needed for a breakout. And considering that the momentum has been all used up on Friday we are now likely going to see further retracement, potentially all the way back to $3553 where the previous minor horizontal level is before a continuation and a breakout to the upside.
From last Tuesday when the price of Ripple was around $0.3 we have seen an increase of 1.48% measured to the current level of $0.30674. The price increased further on Friday and went to $0.325 but since it encountered some strong resistance at those level an immediate retracement took place.
Looking at the hourly chart, you can see that the price is in the corrective stage of the Minor correction inside the falling wedge. The Friday’s increase was to its resistance line and has been interacting with it ever since. The retracement is expected to continue for a bit more as the price has gone down to the horizontal support level at $0.3021. So the support found there might lead to a breakout and that is if the Minor Z wave ended.
On the chart above the correction is labeled as not finished to layout the possibility. But I did end on the now labeled Y wave, and that is why I think the increase we have seen on Friday is the beginning of a breakout. If this is not the case then the price is headed below the mentioned horizontal support level from which we can see the validity of the projected scenario.